, 2020 marked the first national decline in car insurance rates since 2013.
Car insurance rates decreased by nearly 4% on average nationally in 2020 because miles driven dropped 51% during the course of the pandemic.
In addition, many insurance companies offered premium refunds between 15% to 20% a month in the spring of 2020. Some companies also suspended cancellations for non-payment for a period of time and allowed payment arrangements for past due balances. There were even special programs for low-mileage drivers and temporary price reductions put in place.
believes that car crashes could rise to pre-pandemic levels or higher as more people commute over the summer—especially after Labor day. When the risk of accidents is higher, it means insurance companies might have to pay out more in claims. These costs are passed along to drivers through higher car insurance premiums.
The research firm pointed out that more people who have been working from home will be returning to the office. The rise in traffic volume combined with bad driving habits developed during the pandemic can lead to an even higher risk of car crashes.
Assured Research also found that speeding and fatalities rose during the pandemic, according to a study by Cambridge Mobile Telematics. Many states are working to reduce distracted driving and other dangerous driving behaviors.
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Time will tell if these factors lead to increased car insurance rates in the summer and fall. State Farm has recently
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Lisa Steuer McArdle is an insurance writer with over 15 years of experience writing and editing content in a variety of industries, including insurance and personal finance. Lisa specializes in taking deep dives into make and model-specific content that helps car owners and buyers make solid money-saving choices. Lisa has written over 350 articles for Jerry on topics including electric vehicles to classic cars. Before joining Jerry, Lisa worked in various aspects of the printing industry as a content writer, developer, and editor and earned her bachelor’s degree in creative writing from Lycoming College.